South Korea factory activity logs ninth straight month of expansion, PMI shows

SEOUL, Sept 1: South Korea's manufacturing sector witnessed its ninth consecutive month of growth in August, according to a survey conducted by S&P Global. The Purchasing Managers' Index (PMI) for the month stood at 52.3, slightly lower than the 53.1 recorded in July, yet still exhibiting expansionary tendencies as it remained above the 50 threshold.

Manufacturers continued to receive robust new orders, with the sub-index for new orders at 53.5 in August, slightly down from 54.8 in July. While the overall new order growth showed signs of easing in August, the survey highlighted a significant surge in export demand, the strongest since November 2020. This indicates that South Korean manufacturers are still reaping the benefits of the ongoing AI and semiconductor supercycle, stated David Owen, an economist at S&P Global Market Intelligence.

The nation's fourth-largest economy had outperformed expectations in the second quarter, with a semiconductor export boom compensating for a dip in construction investment.